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INDUSTRY INSIGHT

EMPLOYEE ENGAGEMENT FOR MANUFACTURING: How to drive by focusing on your hourly employees With skill shortages stifling FOCUS ON WHAT MATTERS MOST productivity and growth, the last TO YOUR HOURLY EMPLOYEES thing manufacturers need is a disengaged workforce. A truly engaged workforce is key While there are many factors that contribute to workforce engagement, you for attracting and retaining can start by focusing on top employee needs that contribute to a positive work the best talent in a fiercely environment including: competitive market. Safety: Am I getting sufficient rest between shifts to avoid fatigue? In an organizational culture Do I have the proper training required to perform the I’m scheduled for? that fosters transparency, mutual trust, and ongoing Flexibility: Am I getting the appropriate time off I need to maintain my work-life development, your balance? Do I have flexibility over my schedule when unplanned issues arise? employees are more Fair treatment: Are policies applied consistently across all employees? likely to be productive Do I have the same visibility into overtime opportunities as other employees? and committed, thereby delivering better Opportunity to make an impact: How does my work affect the business? Do I have a manager who is available and invested in my performance? business outcomes. Can I influence change within the ?

ORGANIZATIONS WITH HIGHLY ENGAGED EMPLOYEES EXPERIENCE 22% GREATER PRODUCTIVITY1

1 John Baldoni, Employee Engagement Does More than Boost Productivity, Harvard Business Review (July 2013), found at https://hbr.org/2013/07/employee-engagement-does-more/.

1 #WorkEngaged

UNDERSTANDING THE CURRENT STATE OF EMPLOYEE ENGAGEMENT IN MANUFACTURING

Engagement and productivity: Manual processes contribute Every interaction with your employees affects how they work Room for improvement to productivity losses and how they feel about work

57% 58% 3 hrs 54% 54% 48% 57% 72%

Of respondents Of respondents 3 hours lost per Cited better Cite a lack of Say their Face a heavy/ Say better/ rate employee rate employee week, 2.8 of technology would and working life is too unrealistic more up-to- engagement as productivity as which are due to make the company feeling valued as a complicated on a date technology strong in their strong in their admin work more productive daily challenge daily basis systems would organization organization make them feel more engaged in the business

All statistics quoted are based on the findings of the recent Work Engaged survey conducted by Coleman Parkes on behalf of the Workforce Institute at Kronos. This research was intended to investigate 2 the current level of employee engagement in the U.S. #WorkEngaged

CREATING EMPOWERED EMPLOYEES STARTS WITH TECHNOLOGY, DATA, AND MORE INVOLVED MANAGERS

Employees view unplanned absences as a significant challenge Employees want to feel empowered in their roles and disruption to their work and that their work makes an impact

39% 44% 61% 59% 75% 70% 57% 72%

Cited high levels Rate their Report increased Say managing It’s all about connection: Feel the CEO is Believe of / absence employee absenteeism is a Respondents cited the two key factors only focused on employees need sickness as a absence as a truly challenging that would increase employee engagement finances — not to feel more daily challenge processes core disruption experience the employees engaged in the as weak impacting their Better/more Better business work up-to-date communication technology with management

All statistics quoted are based on the findings of the recent Work Engaged survey conducted by Coleman Parkes 3 on behalf of the Workforce Institute at Kronos. This research was intended to investigate the current level of employee engagement in the U.S. MANUFACTURING LEADERS ARE SAYING…

“It’s really important for leaders to lead by “A good leader is example. If you’re talking about being customer someone who knows focused, you have to be approachable and that how to empower all helps you lead in a positive way.” their employees because that often “HR is seen as more of “When you think that varies from a business partner— your role contributes person to looking at what to the success of the person.” employees are doing company, you’re more and how we can likely to work a little capitalize on the harder and think about skills of our the decisions that you employees.” make every day.”

“The Millennials, the youngest generation in the workforce, really values the time off even more than the money. They want that flexibility and strive for more of that work/life balance.”

4 WORKFORCE MANAGEMENT SOLUTIONS HELP INCREASE EMPLOYEE ENGAGEMENT ACROSS YOUR ENTIRE WORKFORCE

KEEP EMPLOYEES SAFE TREAT EMPLOYEES PROVIDE FLEXIBILITY EMPOWER EMPLOYEES ON THE JOB FAIRLY FOR EMPLOYEE TO MAKE AN IMPACT WORK/LIFE BALANCE

Reduce unnecessary Keep employees happy Foster trust and loyalty by Create a culture in which stress and fatigue that can by consistently applying giving employees greater employees understand how compromise safety with regulatory, union, and control over their schedules their performance impacts IMPROVE scheduling tools that take company-specific policies and better managing the business and their EMPLOYEE into account employee skills across the workforce and unplanned absences that feedback is used to drive ENGAGEMENT… and preferences, as well offering equal opportunities can increase colleagues’ continuous improvements. as appropriate rest periods for overtime. . and breaks.

Avoid costly safety violations Minimize costly compliance Drive productivity and Achieve better operational and boost performance with risk and employee reduce absenteeism by results by engaging automated scheduling tools grievances with tools that giving employees mobile employees in improvement IMPROVE that help ensure employees automatically enforce access and the flexibility to discussions and giving BUSINESS are alert and productive on labor laws, union rules and easily view schedules and managerstools and data PERFORMANCE the job. company policies for fair, swap shifts when needed. visibility to focus on equitable treatment of employee performance and all employees. development opportunities.

5 #WorkEngaged

DRIVE PRODUCTIVITY BY FOCUSING ON YOUR HOURLY EMPLOYEES Increase employee engagement with Kronos® workforce management solutions

Keep your employees safe by only scheduling them for jobs for which they are trained, and by giving them adequate breaks and rest periods to avoid excessive stress and fatigue.

Give your employees flexibilityby taking into account availability and preferences when scheduling so they get the vacation and personal time needed for a healthy work/ life balance.

Treat your employees fairly by paying them accurately every time, providing equal opportunities for overtime, and applying policies consistently across your workforce.

Help your employees make an impact by showing them how their work affects the company, making them part of the improvement process, and investing in their future with a manager who has time to provide coaching and development.

To find out how Kronos for Manufacturing can help your company drive employee engagement and improve workforce productivity for better business results, visit https://www.kronos.com/industry-solutions/manufacturing

6 Kronos is a leading provider of workforce management and human capital management cloud solutions. Kronos for Manufacturing provides solutions which help manufacturers attract, retain, and develop fully engaged employees who deliver better business outcomes. More than 2,000 manufacturing of all types and sizes use Kronos to drive productivity improvements and enable on-time delivery of high-quality goods and services. Learn more about Kronos industry-specific time and attendance, scheduling, absence management, activities, HR and payroll, and labor analytics applications at kronos.com/manufacturing. Kronos: Workforce Innovation That Works™.

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